Washington Senate passes new retirement plan option for government employees

OLYMPIA -- The Washington state Senate has approved a bill that would create a new retirement plan option for government employees.

Lawmakers approved the measure with a 25-22 vote, moving to create a 401(k)-style system that workers can use. Republican Sen. Barbara Bailey says the proposal would give workers an option at a time when some want flexibility and portability with their retirement money.

The Senate did approve an amendment that would allow workers to move back into a standard pension plan if they dislike the 401(k)-style option.

Democrats largely opposed the bill, arguing that it wasn't clear how the measure would impact the existing pension system and saying the proposal should be more thoroughly studied. The measure now goes to the state House, which is controlled by Democrats.